Top 6 Unicorns in Israel

Despite the country’s economic and political instability over the years, Israel has a remarkably healthy environment for burgeoning new businesses, boasting a promising ecosystem for startups.

In fact, according to Statista, Israel is home to 95 unicorns as of May 2024, making up about 6% of the world’s total which is sitting at around 1,450.

However, many unicorns and other startups that achieve success after being founded in Israel have followed a trend of seeking greener pastures elsewhere, particularly in the US, but that’s not necessarily an issue unique to Israel. Indeed, the United States is simply a great place to register and run a business, so it’s really no surprise that plenty of entrepreneurs choose to move there once their companies are established.

But, that doesn’t change the fact that Israel still has an excellent startup and unicorn track record, and our list of the top Israeli unicorns is a testament to that.

 

What Makes Israel Ideal for Startups?

 

Unsurprisingly, the question is, why does Israel provide an environment conducive to successful startups? And it’s a question worth asking, because becoming a unicorn – that is, a privately owned company valued at $1 billion or more – is no easy feat, and it has plenty to do with location.

Here are a few things that make Israel an ideal location for startups:

 

• Strong Private Investment Environment
• Significant Government Funding
• Successful Tech industry
• Fairly Relaxed Business Regulations
• Entrepreneurial Culture
• Significant Investment in Research and Development
• Large International Investment

 

While there are concerns regarding the long-term viability of Israel’s booming startup market, that doesn’t change the fact that the country has one of the highest VC-per-capita ratios in the world.

Here are the top 6 unicorns in Israel.

 

1. Rapyd: $8.7 Billion

 

 

Founded in 2015, Rapyd is a fintech startup that has achieved significant success in its nearly 10 years of existence, having claimed the number one spot on Israel’s list of unicorns with its 2022 valuation of $15 billion.

It first achieved unicorn status the year before in 2022, and as of its most recent valuation in 2023, Rapyd is currently worth $8.7 billion. Among the company’s most significant investors are Fidelity, BlackRock and General Catalyst.

Rapyd is a digital financial technology firm that offers users a platform to place orders for services including cash withdrawals, foreign exchange and sending cash to others. Additional features include fun disbursements, compliance as a service, straightforward payments, checkout and more.

Essentially, the platform gives users a way to make effective and safe transactions without the use of a bank card or account.

 

 

2. Stark Ware: $8 Billion 

 

 

StarkWare was founded in Netanya, Israel in 2017 and achieved unicorn status in 2021, sitting high up on Israel’s list of privately owned startups with a valuation of $8 billion.

The startup is a cryptographic proof development platform that is designed to improve scalability in blockchains. By means of complex tech, the platform enables developers to improve security, efficiency and UX (user experience)  of blockchain systems.

StarkWare was launched by the team of Eli Ben-Sasson, Michael Riabzev and Alessandro Chiesa, who now hold the offices of CEO, Chief Architect and Chief Scientist respectively.

 

3. Wiz: $6 Billion

 

 

Wiz, a world-renowned cloud security developer, was founded by Ami Luttwak, Assaf Rappaport, Roy Reznik and Yinon Costica in 2020. Backed by eight different investors, Wiz is worth $6 billion as of 2021, and it is used in various industries, including cloud security, enterprise software, cybersecurity and more.

This Israeli startup provides software that helps businesses maintain the security of their infrastructure on a large scale. It offers cloud visibility by providing an overview of security risks across a variety of workloads, containers and clouds, allowing for the identification of all different types of vulnerabilities and risks.

 

4. Transmit Security: $2.74 Billion

 

 

Transmit Security is the developer of a digital identity platform that provides sophisticated security services. Founded by Mickey Boodaei and Rakesh Loonkar in Tel Aviv in 2014, the startup is now worth $2.74 billion as of 2021 and has offices in both Tel Aviv and Boston.

Its platform allows for authentication without the need for passwords by means of facial detection software. This is used for purposes including passwordless workforce authentication and identity policy orchestration.

 

5. DriveNets: $2.5 Billion

 

 

Founded in Ra’anana in 2015, Drive Nets is the developer of cloud-based software that facilitates communication and networking via the cloud. It offers cloud providers and communications service providers a comprehensive method for building networks, increasing network profitability and etching network growth from cost.

In turn, this helps businesses accelerate innovation, reduce overall complexity and facilitate automated operations, ultimately providing an effective, affordable and flexible solution.

DriveNets was launched by Hillel Kobrinsky and Ido Susan, and, as of 2021, is now worth $2.5 billion, earning it a well-earned spot on Israel’s list of unicorns.

 

6. HiBob: $2.45 Billion 

 

 

Valued at $2.45 billion in 2021, HiBob is a modern HR management system that is cloud-based. It serves as a centralised platform for all a company’s HR-related needs, including employee records, compensation management, attendance records, time-off schedules and more. By having all this information in one place, the data is far more accessible, helping users make informed strategic decisions.

HiBob has been through eight funding rounds in its nearly 10 years, having received approximately $250 million of investment from 14 different investors.

The company was founded by Israel David and Ronni Zehavi in Tel Aviv, and the platform has achieved remarkable success since then, allowing for the streamlining of HR services.